How Environmental Performance Enhances Corporate Sustainability Performance The Mediating Role of Green Accounting Information Disclosure

Authors

Yudi Zhou student
Mui Yee Cheok

Keywords:

Environmental performance, Corporate sustainability performance, Green accounting information disclosure, Triple Bottom Line, Signaling Theory

Abstract

Corporate sustainability has become a strategic priority for firms facing increasing environmental challenges and stakeholder expectations. Although previous studies have confirmed that environmental performance contributes to corporate sustainability performance, limited attention has been paid to the underlying mechanism through which environmental performance enhances sustainability outcomes. This study addresses this research gap by examining the mediating role of green accounting information disclosure (GAID) in the relationship between environmental performance (ENV) and corporate sustainability performance (CSP). Using panel data from 6,154 firm-year observations of Chinese ChiNext-listed companies during 2015–2024, this study employs panel regression and mediation analysis to test the proposed relationships. The empirical results indicate that environmental performance significantly improves corporate sustainability performance. In addition, environmental performance positively influences the quality of green accounting information disclosure, while GAID has a significant positive effect on corporate sustainability performance. The mediation analysis further demonstrates that GAID partially mediates the relationship between environmental performance and corporate sustainability performance. The findings contribute to the growing literature on corporate sustainability by explaining how environmental performance is translated into sustainability outcomes through green accounting information disclosure, while also providing practical implications for sustainability governance in emerging economies.

Author Biography

Yudi Zhou, student

Corporate sustainability has become a strategic priority for firms facing increasing environmental challenges and stakeholder expectations. Although previous studies have confirmed that environmental performance contributes to corporate sustainability performance, limited attention has been paid to the underlying mechanism through which environmental performance enhances sustainability outcomes. This study addresses this research gap by examining the mediating role of green accounting information disclosure (GAID) in the relationship between environmental performance (ENV) and corporate sustainability performance (CSP). Using panel data from 6,154 firm-year observations of Chinese ChiNext-listed companies during 2015–2024, this study employs panel regression and mediation analysis to test the proposed relationships. The empirical results indicate that environmental performance significantly improves corporate sustainability performance. In addition, environmental performance positively influences the quality of green accounting information disclosure, while GAID has a significant positive effect on corporate sustainability performance. The mediation analysis further demonstrates that GAID partially mediates the relationship between environmental performance and corporate sustainability performance. The findings contribute to the growing literature on corporate sustainability by explaining how environmental performance is translated into sustainability outcomes through green accounting information disclosure, while also providing practical implications for sustainability governance in emerging economies.

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Abstract

Author Biography

Yudi Zhou, student

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